The American residential solar fees Mosaïek has applied for a bankruptcy of Chapter 11 in the midst of rising interest rates and policy uncertainty, which join the sector in a wave of financial need. The company, which has supported more than $ 15 billion in energy associations for home, will continue a restructuring approved by the court that is supported by existing lenders.
Residential provider of Zonne -Loing Mosaic has announced that it has submitted bankruptcy for Chapter 11.
Founded in 2010, the company has so far financed more than $ 15 billion in loans, to support more than 500,000 households that finance solar energy, battery storage and other energy products for home.
The company will carry out a restructuring and re -capitalization that is supported by its existing lenders, including Forbright Bank.
Prior to submitting bankruptcy, the company said that actions were taken to reorganize the company to meet its current liquidity needs. However, it said that macro -economic challenges with which the entire residential solar industry is confronted, including high interest rates and legislation that threatens to eliminate tax credits for residential solar sun sun, have influenced the capital flow. Residential solar installations Daal 31% in 2024 And constant uncertainty with regard to the 48th and 25d federal tax credits for solar energy throws clouds over the industry in 2025.
The company announced in May that it would pause operations and warn its installation partners that there would be significant delays in milestone payments. Missed milestone payments cause one “stair -like effect“That can lead to cash flow crises for residential solar installers, EnergySage said.
EnergySage said that residential solar lends in 2024 fell into the market share, which represents 43% of the contracts, the lowest since 2017. This led to a more fragmented market, with large lenders experienced market drops, while smaller players such as credit associations received a growing market share.
As part of the restructuring, Mosaic receives $ 45 million in financing of debtor-in possession of his existing lenders, including $ 15 million in new money financing that, after approval of the court, is expected to finance ongoing activities and administrative costs during the procedure of Chapter 11.
The company submitted motions to the court to ask for the power to pay wages and benefits of employees, to compensate certain suppliers and suppliers on a go-forward and to facilitate the completion of partially finished installation projects.
Mosaic said it may complete one or more asset -buying transactions in accordance with section 363 of the US bankruptcy code.
Paul Hastings LLP acts as a legal adviser, BRG serves as Chief Restructuring Officer, Jefferies serves as the investment banker and C Street Advisory Group serves as a strategic communication consultant for the company. Blank Rome LLP is a legal adviser and Huron Consulting Group serves as a financial adviser to Forbright Bank.
“Today’s announcement is an important step for mosaic to tackle our financial position in the midst of the macro -economic challenges with which the residential solar industry is confronted, as well as the recent legislation adopted by the house that residential solar tax credits goes back,” said Patrick Moore, Mosaic Chief Executive. “During this process we remain aimed at maintaining stability for our customers, business partners and employees.”
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